ETH has witnessed a steep decline in 2018, with its current price of $386, representing a 70% decline from its ATH.
ETH price and ICO volume seems to be co-related
As more and more was invested into ICOs, it drove demand for more ETH, locking more of it in DAPP wallets and increasing the price further. However as price and ICO volume fell, it is now driving ETH lower
ETH decline will impact new ICOs and old ICOs alike
With decline in ETH price, ICOs become less attractive and at the same time ICOs that had raised ETH and now hold ETH lose runway as eventually, ETH needs to be converted to fiat money to fuel their operational expenses
The key question here is how much of ETH demand is directly tied to ICOs vs other reasons? If the major reason is infact ICOs, we need to keep a watch on ICO $ raised and looking at the chart above, this doesn't bode well for ETH